II

Contents

Safety 04

Innovation 08

Our people are our strength 14

Our customers are our partners 28

Our communities are our homes 30

Our shareholders are our foundations 36

BlueScope has built a strong foundation for growth, with a diverse portfolio of businesses in some of the fastest growing economies of the world, and a strong balance sheet, which enables strategic flexibility.

The global steel industry has seen extensive changes in recent times. As an example, China is now exporting finished steel equivalent to 45 times the annual output of Port Kembla Steelworks.

A review of BlueScope’s strategy has been conducted to ensure we get the best from our quality assets, identifying where the greatest value for BlueScope is created, where the greatest opportunities lie, and what we must do to successfully deliver value.

Our strategic focus is to:

a) focus on the growth of our portfolio of high quality premium branded businesses around the world;

b) deliver competitive commodity steel supply in our local markets;

c) maximise value from our 100 per cent ownership of North Star BlueScope Steel; and

d) ensure ongoing financial strength.

BlueScope today – our direction

1

North Star BlueScope Steel is the best performing steel plant in the US, and one of the best in the world.

In October, BlueScope assumed full ownership of North Star, which improves our portfolio value and business flexibility.

North Star has delivered consistent financial performance, and strong returns on invested capital to BlueScope.

It is a high quality operation, centrally located within a large scrap pool, its primary source of raw materials; it operates close to its core customers, has low conversion costs and benefits from a highly motivated and capable work force. With 380 employees, North Star produces 2.0 million tonnes per annum of hot rolled coil at the mini-mill located in Delta, Ohio.

The business is recognised by customers in the independent Jacobson survey as the leading mini-mill in the US based on quality, service and on-time delivery.

Maximise value from our 100 per cent ownership of North Star BlueScope Steel

2

BlueScope is a global leader in premium branded coated and painted steel products – the third largest manufacturer of painted and coated steel products globally and we are number one in building and construction markets. We have great strengths in engineered steel buildings in the world's key markets.

We will drive growth in premium branded coated and painted steel markets in Asia Pacific, and build on the strong value proposition we offer customers across the Pacific Rim from Asia, Australia, New Zealand and to the west coast of North America.

In our engineered buildings business we will drive BlueScope Buildings growth in North America, and turn around the business in China. We have a distinctive capability in engineered buildings and are the market leader in the two largest markets, North America and China.

Grow premium branded steel businesses with strong channels to market

Deliver competitive commodity steel supply in our local markets

Financial strength is a core pillar of our strategy, and supports value creation for investors.

BlueScope’s framework for value creation is based on quality of earnings, returns on invested capital, credible growth plans and the strength of the balance sheet.

The Company is committed to deliver value from steelmaking in Australia and New Zealand by game-changing cost reductions.

It has been decided to continue steelmaking at Port Kembla with confidence that the commitments made to eliminate costs will deliver more than $200 million in operational savings in Australia by FY2017.

Further, good progress towards the $50 million cost-out target has been made at New Zealand Steel and the Board has decided that steelmaking at Glenbrook should continue.

For the Australian and New Zealand steelmaking operations to be sustainable, we must remain cost competitive and continue to deliver value through the cycle. This is our continued challenge.

Ensure ongoing financial strength

3

Last year Paul O’Malley, Managing Director & CEO, urged us to Switch on Safety, so it is very pleasing that in FY2015 BlueScope produced best ever safety results, an outstanding achievement especially when we consider the difficult operating environment and the opportunities that created for generating distraction, which we know is often a significant contributor to incidents.

Adding to those impressive results, some businesses – New Zealand & Pacific Islands, BlueScope China, BANZ Supply Chain & Processing and Lysaght in Australia – have made significant improvements year-on-year, and a growing number of other businesses are reporting many years LTI free.

On the other hand, it is important to keep things in perspective. The FY2015 results mean that from our total workforce of more than 16,000 across the globe, 24 people suffered a Lost Time Injury and 200 incurred a Medically Treated Injury. That’s why our goal must be Zero Harm.

In FY2016 the performance of our newly acquired businesses (Pacific Steel, Fielders, Orrcon and North Star) will be included in our targets. The challenge for us is to do a good job of welcoming them into the fold and ensuring we make the most of the opportunity to learn from each other, share best practice and continue to improve.

Our approach to safety is based on identifying risks and either eliminating them or implementing controls to ensure the risk is

managed appropriately. Maintaining a register of all risks allows us to prioritise our effort and focus on what we know to be the biggest risk or the most frequent contributor to injuries. For instance, we know that people or things falling from height is the risk most likely to lead to a fatality. We also know that manual handling generates the most Lost Time Injuries. Both of those risks deserve a lot of attention.

Reporting incidents is a vital part of our risk management system and something that each of us can contribute to. Every time we recognise a risk and intervene before an incident occurs we potentially save ourselves, or a colleague, from serious injury. That is what Zero Harm is all about.

Serious Safety Occurrence reports (SSO) are generated when an incident occurs which is classified P4 and has the potential to lead to a fatality. Each month these reports are reviewed by CEO Paul O’Malley and his leadership team and in future the review will be published so that all employees can learn from others’ experiences.

Our safety performance continues to improve, and identifying and controlling risk has been a major contributing factor. Intervening and reporting unsafe acts or conditions is how we, as individuals, look after each other and demonstrate our commitment to Zero Harm. How we behave every day makes the difference and determines how successful we will be. Be proactive, don’t leave it to someone else, remember SEE something, SAY something, DO something and ensure everyone goes home safe.

60.0

Years ended 30 June

Med

ical

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reat

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52.2

47.1

29.1

21.9

17.0

12.4

9.4 8.3 9.3

6.6 6.8

6.4 5.7 5.1 6.3 5.8 5.7 5.3 4.6

FY20

15

16.0

14.0

8.0

4.8

3.54.1

3.52.8

1.8 1.60.9 0.8 0.6 0

.9 0.9 0.9 0.7 0.9 0.9 0.60.6

Years ended 30 June

Lost

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FY20

15

SEE, SAY, DO

Our goal is Zero Harm

4

Following a series of LTIs within six months at Indonesia’s Cilegon site, Abdullah Lubis, Vice President Manufacturing, called for a survey of the site’s safety culture to identify the real cause of the incidents.

The survey was conducted by two experts from BlueScope’s network, Gary Hook, recently retired from New Zealand Steel, and Hanim AbuBakar, Vice President Safety, Health and Environment, Coated Products.

All 230 employees and 120 contractors at Cilegon are now committed to changing safety behaviours and improving the safety culture after working through a range≈of initiatives developed from the analysis of the survey results. The first five point action plan has been completed, and the team is now working through a second 10 point action plan.

All actions are reviewed and progress monitored in the monthly site safety committee meeting, and the Indonesia Management Team reviews safety reports regularly.

The safety culture improvement initiatives include:

• Better management of high risk tasks;

• Increasing employee engagement in the Site Safety Committee through 50 per cent employee representation (previously the committee comprised solely site management);

• Establishing safety SGA (Small Group Activity) which is reviewed in monthly site safety meeting, and accompanied by new posters and other materials;

• Introducing regular 15 minute safety contact for employees and contractors each morning;

• Implementing Safety Critical Procedure Competency Assessment for all operators in all departments;

• Conducting Safety Leadership Program, with a focus on Felt Leadership; and

• A focus on better quality tiered and SAO audits.

Building a safety culture

5

More than 80 per cent of Coated Products

employees in Asia have completed a safety perception survey

6

Working towards our safety goalMore than 80 per cent of Coated Products employees in Asia have completed a safety perception survey that, coupled with focus group interviews, has provided valuable feedback on the strength of safety programs in the business. The survey is one initiative undertaken in Coated Products to keep its safety programs fresh and keep employees engaged in further improving safety performance.

“ As long as we are still injuring people, we are not happy, we want to be proactive in managing safety,” says Hanim AbuBakar, Vice President Safety, Health & Environment, Coated Products.

“ We now better understand the strength of our safety culture amongst employees at all levels,” continues Hanim. “ We have identified strengths and opportunities from the data gathered, and developed a safety culture improvement plan, where key areas of focus are leadership, training and competency, and employee engagement.”

2015 Managing Director & CEO Zero Harm Awards

Best Zero Harm Performance awardBlueScope Vietnam

Most Improved Zero Harm Performance awardNew Zealand Steel & Pacific Islands

Felt Leadership awardRichard Beker – Victorian Processing Leader BANZ Processing & Logistics, Sunshine

Safety Champion awardNuin Anak Sekop – Factory Supervisor Lysaght Sarawak, Malaysia

Safe & Healthy People awardiCare Recipes for Safety Services & Manufacturing Excellence Team BANZ Manufacturing, Port Kembla

Safe & Tidy Plant awardExhaust Fume Reduction at MCL Nguyen Van Linh – Maintenance Team Leader BlueScope Vietnam, Phu My

Safe Systems award Pickle Line De-Banding Robot Steelscape Kalama, North America

7

Capital efficient growth

The importance of innovation cannot be overstated. As market conditions change and competition catches up, we must find ways to continuously improve our business, develop better products, and optimize our processes.

The core of who we are today is a direct result of hard work and creativity. From the earliest development of Butler’s MR-24® roofing system more than 45 years ago to doing business in new places and new markets and finding creative ways to save costs, through to the continued improvement of the ZINCALUME® and COLORBOND® steel brands with next generation technology for coating and painting facilities around the world – innovation has been at the centre of everything we do.

Innovation is core to the corporate strategy that will drive BlueScope in the years ahead.

As part of the corporate strategy review a task force has been set up to investigate how BlueScope can build upon our past success in innovation. A team has begun an innovation implementation plan to “create value through innovation.”

This new initiative will support employees to innovate at work so BlueScope can flourish. Over the coming months we will hear more about how BlueScope intends to increase and build on our strong foundation of innovation.

BlueScope has a long history of taking an innovative approach to meeting customer needs that has allowed us to prosper in different markets with a diverse range of customers and stakeholders.

Technical Excellence

Strategic Relationships

Customer first

Best brands and channels

Market Inspired

Innovation

Innovation at BlueScope

8

This could mean creating value for our customers by offering more consistent quality, increased delivery performance, a new service or product that they value more highly than the alternative, or a more cost effective solution to their problem.

It could also be a new way of doing business in a new market, or in an entirely different region with a new group of customers. Furthermore, innovation could be finding ways to achieve the same result with fewer resources, which may save costs.

Innovation is more than just new products. Innovation is the practical implementation of any new idea, a more effective way of doing things, or any new process that results in increased value.

What is innovation?

9

What will innovation at BlueScope look like?

The innovation implementation plan will continue to evolve, however early plans include:

• We will work to embed a culture of innovation throughout the organisation

• Achievement of innovation targets will be recognised and rewarded

• Best practice toolbox of ideas will be disseminated throughout BlueScope, supported by a new corporate innovation team

• The Innovation Forum will continue to communicate best practice and facilitate synergies across business units and regions

• A range of approaches to innovation will increase the flexibility BlueScope employs when generating and developing new ideas

• A flexible framework will combine business unit strategies with market and technology trends to evaluate and prioritise ideas from concept to commercial application

• Innovation success will be celebrated and highlighted throughout BlueScope

• The Essentials professional development program and other development programs will incorporate innovation learning modules

10

Focus on innovation

Months of testing and research have enabled ZINCALUME® steel to replace aluminium as insulation in petrochemical applications, and has helped open new market opportunities outside BlueScope China’s traditional industrial buildings segment. The business has completed its first large-scale project, supplying 2,800 tonnes of ZINCALUME® steel for the Sinochem Quanzhou refinery. In addition, 1,000 tonnes of premium pre-painted steel have been supplied for pipe insulation on another chemical project.

These new opportunities are thanks to the hard work and cooperation of BlueScope China’s sales, marketing and technical teams who worked together to develop technical and processing solutions and demonstrate the potential to customers.

Rapid product innovation, adaptation and technical support are critical for Lysaght in ASEAN to maintain market leadership and differentiate itself as a nimble, entrepreneurial competitor.

In response, a Product Innovation Centre (PIC) has been established, encompassing product and technology innovation, testing and certification, knowledge management and training, software development and business support for major projects. Historically the Coated Products team looked to Lysaght Research & Technology Australia for innovation support, and called on its resources to help develop knowledge, processes, and tools.

The PIC is co-located with Lysaght Singapore, close to trained specialists, universities and research laboratories, cutting-edge technology and new ideas. A separate floor with hoist system and range of test rigs will enable the full suite of testing to determine the performance and reliability of products in accordance with international and local standards.

The PIC team is knowledgeable in Lysaght products, standards and regulatory requirements, as well as having practical experience and technical expertise in using steel. It now manages all technical queries, requests and testing requirements for Lysaght ASEAN, provides training and business support and helps explore new market opportunities.

Since opening in July, the PIC has seven task briefs in progress, including load and wind uplift testing of the OPTIMATM series used across the region and the new deep rib profile targeting the Japanese segment in Vietnam. In addition, testing for the Zipdek profile in Thailand and competitive testing for the Indonesian market is underway.

The PIC team will constantly review and refine the ASEAN product and technology roadmap, and will keep in regular contact with the business through workshops based on specific products, applications and market segments for the region.

Opening new market opportunities

11

BlueScope ANZ’s new SlimFlor ‘in plane’ flooring system has the potential to significantly reshape steel frame and formwork construction in multi-storey building applications.

The SlimFlor system has been developed using the Fielders CF210® profile, part of the KingFlor range of steel formwork profiles, with an asymmetric steel beam (ASB) design. The CF210® profile is placed on the extended bottom flange of the ASB to allow for a reduced floor construction depth of 290mm.

Historically, the deep flooring construction depth (658mm) of Bondek in steel frame buildings has turned developers away from using steel in apartment building design as it increases the building height–and therefore leads to higher construction costs. SlimFlor can now compete with concrete framed buildings using ‘flat plate’ floor construction.

SlimFlor not only delivers the intrinsic benefits of steel frame construction, but also allows an additional ‘free floor’ in the same building height for every 10 floors constructed over traditional steel frame. This means more tenant area for lease, reduced façade cost, reduced construction time, and less materials, labour and waste on site. The trapezoid profile of SlimFlor displaces the equivalent of 170mm of concrete from the slab concrete mass.

Used in constructing a 30 storey apartment building in Sydney, the SlimFlor system is expected to reduce construction time by five months, translating into a 20 per cent reduction in the overall construction time of the building.

The speed of erecting the steel frame solution using SlimFlor over the traditional concrete frame building leads to significant revenue advantages for the client through earlier tenancies of the apartments.

With steel frame and formwork construction making up just 15 per cent of the Australian market, which is dominated by concrete frame and ply formwork, the potential for SlimFlor is huge.

New approach presents huge opportunity for steel

12

An innovative new roofing product has helped BlueScope Vietnam protect its share of the premium product market, as retail competitors began matching the quality of BlueScope’s products.

Extensive market research conducted with consumers, customers and builders showed homeowners’ first priority is that their roof looks good no matter what the material. A look like tiles, but durable and more affordable, is the best combination. This information gave the BlueScope Vietnam team clear direction on the product innovation task.

Several prototype samples were developed, and the product design further refined to feature a rough surface – again in response to consumer and builder feedback. Working closely with experienced external paint supplier Akzo Nobel, the team put in a huge effort to iron out

supply and operational issues to have the product commercially available for BlueScope’s annual Retail Segment Customer conference.

The product has exceeded the business case estimates and volumes have been growing month on month since the launch in March, proving the value of listening closely to the market and delivering to meet expectations.

The BlueScope Zacs® Fengshui collection with ‘Wrinkle’ textured surface has earned a place in customers’ minds – “Strong as steel. More beautiful than tiles.”

Listening to the customer

13

• Two site project managers from BlueScope Buildings Thailand were posted to Ghana for three months to supervise the completion of a project won by the Vietnam business which could not send its own employees due to visa restrictions between the two countries.

• A BlueScope Buildings Thailand Technical Manager has supported a project in Vietnam for major customer Procter & Gamble.

• A Technical Sales Manager from BlueScope Buildings Thailand was seconded to BlueScope Malaysia when experienced technical resources were required to support the construction of the new inline paintline.

• HR professionals from BlueScope Buildings Vietnam have assisted in filling vacancies in the commercial team in Thailand, and helped recruit two designers to work in Thailand, where it was difficult to hire the experienced professionals required at that time.

As the market changes and becomes more challenging, BlueScope people are working together to embrace the opportunities wherever possible.

In ASEAN, BlueScope Buildings footprint ranges from Thailand and Vietnam to Indonesia, Malaysia and Singapore, and cross-country and cross-business cooperation is developing as a competitive advantage in improving service to customers and working more efficiently. Here are some examples:

BlueScope ANZ ‘Strive to Thrive’

Strive to Thrive is a change program seeking to deliver a $300 million step change in BlueScope ANZ’s EBIT performance as part of its strategy to move to a thriving, sustainable business model.

Strive to Thrive comprises 587 individually named projects. Many of these are actually made up of many sub projects, so the real total is much higher.

The full value of all the projects is $568m compared with FY2015 actuals, although not all of them have been authorised yet. They can be split into the following categories, shown with their current value:

Productivity improvements – $175m Revenue – $126m Procurement – $79m Overheads – $55m

Asset Spend – $47m Operational Efficiency – $22m Raw Materials – $64m

In 2015, BANZ employees have made a tremendous contribution to all areas of the Strive to Thrive program, including contributing to the decision to continue steelmaking in Australia and New Zealand.

Our people are our strength

14

Members of the BlueScope Buildings Extended Leadership Team demonstrate the power of “Building Together” through an interactive team exercise with building blocks. Four teams comprising representatives of BlueScope Buildings various business units and regions worked together to build the highest tower without causing the blocks to fall.

Two years ago Coated Products North America embraced innovation as a fundamental pillar of its Bridgespan 25 growth strategy. Since then, it has successfully launched several new products, expanded its presence into new markets, adopted SAP enterprise software for ASC Profiles, and completed many cost saving initiatives, such as installing solar panels in three facilities and relocating two factories.

The challenge now is to ensure that the innovation pipeline remains fully loaded with meaningful and profitable new ideas, and that the business does not become trapped in the same way of doing things.

To avoid this risk, and leveraging the model developed by Lysaght Australia, the team has developed the “Idea Factory” - a simple way to boost creativity and generate ideas, which encourages all employees, regardless of their experience, technical knowledge or position, to participate by answering three questions: What? Why? How? Anyone can come up with a great idea by setting aside a few minutes each day to take a step back and ask if there is a better way of doing business.

The Idea Factory centres around informal, free-flowing departmental and cross functional brainstorming sessions. Quirky ideas are welcomed and built upon, no idea is too big or small, and failure is an option. In addition, employees are encouraged to submit ideas anytime via intranet, email, suggestion boxes placed at sites, or by talking to a member of the marketing team.

A trial of the Idea Factory was successfully launched in West Sacramento, CA, by Richard King, Market Analyst, and John Provencal, Marketing Manager. “Creating a culture of innovation requires a process which encourages creativity and a fluid flow of ideas. The over-arching concept of the Idea Factory is to create an environment where new ideas are appreciated and encouraged from all employees,” John explains.

“It’s an employee run, ground-up approach, where everyone feels comfortable to submit their unfiltered ideas. To date, we’ve received close to 50 suggestions,” adds Richard.

Recognition is an important element of The Idea Factory, with random draws held for ideas submitted. An “Innovator of the Quarter” and an “Innovation Team of the Quarter” will be recognised and awarded certificates and gift cards. Following the success of the Idea Factory at West Sacramento, work is underway to roll it out to other facilities.

Encouraging new ideas

Building together

15

New billet caster a rolling victory!

The first billets have been cast on New Zealand’s new billet caster, a key milestone in integrating Pacific Steel into New Zealand and Pacific Islands and in realising the significant value from the Pacific Steel acquisition in June 2014.

It was a memorable occasion for members of the team who tapped a billet grade at steelmaking, treated the ladle at the new ladle metallurgy furnace, cast billets on the billet caster and finally ramped up the billet production as they completed commissioning. Seven billets were processed from the first cast and the mechanical properties of the end product were well within specification and desired range.

The billet caster at New Zealand Steel will enable liquid steel to be redirected from loss making flat steel exports to profitable domestic reinforcing and wire products through Pacific Steel.

Every grade produced has been trialled using the new billet feed through the rolling mill and wire mill at the Pacific Steel mill and through customers’ processes to confirm that the new product meets required properties and attributes.

Once each grade is confirmed as successful through the full supply chain, it will be released for commercial production and ramped up on the new billet caster. Full production will see around 1,000 ton of billet transported daily from New Zealand Steel to Pacific Steel.

Congratulations to the many people involved in establishing and executing the business processes and physical infrastructure required for this new supply chain.

16

A business review conducted during FY2015 determined that BlueScope Buildings China needed to improve frame workshop capacity utilisation to lower overall conversion costs and improve business competitiveness. Instead of sending orders to external contracting companies (sub-fabricators), the business moved to give priority to internal capability.

A cross-functional approach helped change long-standing practices that were no longer relevant in changed market and business conditions. The Buildings and Lysaght manufacturing teams worked with the National Planning, Engineering, Project Management and Buildings North America Manufacturing Excellence teams on a number of separate initiatives. For example, orders were shifted from site to site, ensuring that plants in Shanghai, Tianjin, Guangzhou and Xi’an were busy with work before sub-fabricators were engaged. Buildings were designed within internal capability constraints, where possible. New pipe and hot-rolled beam processing capability was added to the Shanghai plant, and a monthly ‘Sales & Operations Planning’ process was initiated.

Historically, approximately two thirds of all frame orders were sent to sub-fabricators. However, with the new internal processes now in place, overall outsourcing has reduced to 55 per cent.

A number of new production records have been set from Tianjin, Shanghai, Guangzhou and Xi’an plants, with total China frames reaching 3,826 tons in July 2015. The challenge now is for all plants to consistently produce more than 1000 frame tons every month, and to develop plans and actions to achieve 1500 frame tons every month at each site. Ultimately, if the China team can achieve these goals then the future of our internal capability and the success of the whole BlueScope Buildings business should be secured.

Creating value

17

Under the Strive2Thrive program, BANZ employees are working to deliver a $300 million improvement in EBIT performance by June 2017. Nine workstreams representing all areas of the BANZ business have been set up to analyse, scope, recommend and implement Strive2Thrive initiatives.

A team from the Basic Oxygen Steelmaking (BOS) plant at Port Kembla Steelworks has successfully implemented a project that posed significant risk but, with the risks safely overcome, is already making a contribution to the Strive2Thrive goals.

“Retained slag sounds simple – you just use any metal that has not been able to be separated out and leftover slag in the next heat,” says Rod Snashall, Slabmaking Technology Manager. “But in reality, it’s a very complex and dangerous process that has to be managed very carefully.

“Around 20 years ago, BHP Steel attempted to use retained slag at the old Newcastle steelworks, with disastrous consequences caused by a reaction between molten slag in the furnace when molten metal was poured onto it. Since then, it has always considered too dangerous to contemplate.”

“Given the Newcastle experience, there was a lot of emotion right from the start,” continues Shaun Hamilton, Technical Coordinator, BOS. “But improved technology means that today we have access to much more knowledge, research and data on which to base our decisions, and we can make much more accurate measurements.”

“We consulted with the BOS team right from the start, and have taken three or four years work to get everything absolutely right,” says Brett Tarrant, who was the BOS Manager at the time. “Everyone clearly understood the opportunities available, but also the parameters that were set. And the team fully supported the project and knew they wouldn’t be at risk.

“We were all there for the very first heat, which demonstrated what could be done. We’ve now increased the number of retained slag heats and are seeing the benefits – already there has been a very good yield benefit of $7 million per annum, and $1.8 million saved through reduced flux purchase.”

“We’ve shown that the benefits to be gained were worth the effort to manage the risk,” concludes Rod. “We’ve challenged past views to deliver a successful result, and have demonstrated what can be achieved.”

The retained slag project is starting to realise important savings, and is just one example of the type of project BANZ needs to uncover to strive toward a sustainable steel business.

Teamwork safely achieves a breakthrough

18

A key element of Coated Products Bamboo200 strategy is the aspiration to become a 200 million dollar EBIT, 20% Return on Invested Capital (ROIC) business by 2018. Having an effective sales team that can succeed in a very competitive market is central to delivering the revenue that will help achieve these goals.

Recognising the need to be faster and smarter in identifying and seizing opportunities to provide value to customers, Coated Products introduced a new Sales Force Effectiveness program to fundamentally transform the role and improve the skills and capabilities of the sales force across the region.

The program is based on making sure sales professionals understand what is expected of them to be the best in the market. A Sales Success Profile helped measure existing skills and capabilities, and then the sales team participated in targeted training to learn new skills, tools and resources to help win sales and set BlueScope apart from its competitors.

Alongside the classroom training, sales reward and incentive programs were renewed to ensure consistency across the business in recognising the sales team. Also, the Sales Management System was updated to help better manage day to day work requirements and more accurately measure all sales activity. A change management program helped support members of the team not comfortable with moving to new ways of working.

Already there have been good results from the assessment of the sales team against the competencies defined in the Sales Success Profile, and the Coated Products regional team is better informed to know how to address skill gaps through various training programs such as Value Sales Conversations and Drive Sales Results.

With the right approach and measurement the team is confident it will succeed in bringing the program tagline to fruition: Be the best - because you can!

Be the best - because you can

“We’ve challenged past views to deliver a successful result,

and have demonstrated what can be achieved.”

19

Brianna Knowles, Paint Coatings Innovation Officer, BlueScope ANZ, received an academic award from the University of Wollongong for her Bachelor of Chemistry Honours thesis. This work forms the foundation of an anti-fungal solution for COLORBOND® steel, which Brianna is continuing to pursue in conjunction with the University of Wollongong Innovation Hub.

“ I was first exposed to the field of antifouling coatings while completing an undergraduate project in 2013,” says Brianna. “I have since completed my honours year and started my PhD project in the same field.

“ My focus is not only on exploring different antifungal coatings but also on developing materials and methods that are feasible to be scaled up for industrialisation.

“ So, when antifungal coatings are included in the manufacture of our products, they will look better for longer and will be able to function at their utmost efficiency, without suffering from a loss in functionality.

“ I have been working with the Steel Research HUB program, which itself benefits from collaborations with the university and industrial partners who are leaders in their respective fields, working towards building knowledge and developing and understanding the systems we are making.

“ It is an exciting field to be working in, and I feel very privileged to be part of this research team.”

Building dreamsBlueScope Buildings China has won a number of contracts to build factories for fast-growing automobile and rechargeable batteries manufacturer BYD – ‘Build Your Dream’.

In FY2015, BlueScope Buildings has signed contracts for six factories totalling more than 500,000 square metres.

“We have been successful because BYD respects the quality of our products, our superior service, and our ability to complete projects on time and safely. In addition, we help them meet their strategic objectives,” says Marilyn Zhang, Sales Director, BlueScope Buildings China South Region. “At times it has been a challenging customer relationship, with changes to design, cost structures and timelines. And sometimes our resources and capabilities have been stretched, particularly under BlueScope China’s new business model, but with great teamwork and a ‘no mission impossible’ attitude we have proven ourselves to be more than capable of the task.”

This is the first national key account for Buildings China, and the team hopes to replicate this type of teamwork and success with more accounts just like it.

Academic work supports innovation

20

‘ To deliver results, we need to keep developing the organisation and our people – us. WITTS tells us the things everyone can and should do.’ Dustin Shouda Yang, President Lysaght China

The new What it Takes to Succeed (WITTS) capability framework and development tools will help you - and BlueScope – achieve success.

How to be successful at BlueScope

What is WITTS? WITTS is BlueScope’s capability framework, designed to help you succeed in your role, and prepare for future career opportunities.

The WITTS framework helps you build on your strengths. It also helps you identify gaps where you can improve, and how you can make those improvements. It shows the capabilities – or skills and behaviours – required to be successful at BlueScope.

The new WITTS framework is aligned with BlueScope’s strategy. It now includes capabilities relating to customer focus, innovation, change leadership and collaboration. So, if you use the framework you are supporting BlueScope’s strategy and setting yourself up for success.

It’s simpler and easier to use with a suite of self-serve tools to help including videos, an intranet site, guidelines, self-assessments and an e-learning module.

How WITTS worksThe key to making WITTS work for you is to firstly identify the right development need. You can do this by doing an assessment and seeking feedback from others.

Once you have identified the developmental need, you are ready to take action. The WITTS Kit includes a range of development strategies and formal training. Select one or two that are most relevant to your need.

WITTS can also be used to guide recruitment and succession processes, as it helps managers to select people who demonstrate the required capabilities.

Why WITTS mattersFirst and foremost, organisational capability starts with you – that is, with all BlueScope people. If you, your department and your team are successful, in the end BlueScope will be successful.

For employees, WITTS clarifies what is required for success, identifies strengths and areas to improve, and provides focus for career and development planning.

For managers, the WITTS tools help clarify expectations, identify capability strengths and gaps, develop team members, and select people.

For BlueScope, WITTS clearly outlines what success looks like at each level of the organisation. It ensures we have highly skilled people who are capable of delivering our strategy.

As Our Bond states, ‘Our People are Our Strength’, and that is the key to a successful business.

WITTS tips for success

• Start your development journey by using the self-assessment tool to understand your priorities

• Use the WITTS Kit to identify the best development options for you

• Seek feedback from others and take on new challenges to increase your learning agility, a key predictor for success

• Discuss your development priorities with your manager

Scan here to access the WITTS Kit or follow this link: http://www.ext.bluescopesteel.com/ sites/1676/Pages/Welcome.aspx

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Our overarching diversity goals focus on increasing awareness and commitment to diversity, cross-functional and cross-business appointments and regional talent development. And to build on the success we have achieved to date, increasing the number of local appointments to ASEAN management teams.

However, with women making up just 16.6 per cent of BlueScope’s workforce, we are putting considerable effort into areas of activity that we hope will help attract women to BlueScope and support their development:

• Diversity of experience and perspective – support secondments and job swaps to increase diversity of experience and perspective, and ensure there are no barriers to the progression of women at BlueScope.

• Structured development programs – establish mentoring programs to support and develop employees, form partnerships with technical schools to attract and hire more women, include diversity and inclusive leadership as a core component of our Essentials development programs.

• Representation of diverse talent – ensure men and women are represented in all stages of recruitment, and that all interview panels are comprised of men and women and/or representatives from different functions, identify youth employment opportunities through graduate programs, scholarships and technician cadetships, encourage diversity of apprentices and operators within manufacturing.

• Inclusive and supportive work environment - analyse exit interviews and retention rates of women returning from maternity leave, ensure we have the basics right in 100% of shop floor facilities, toilets and locker rooms must cater for female employees, ensure managers understand how to support creating a work/life balance for employees.

We are also working to increase awareness and commitment to diversity through communication and training programs.

The greatest gender imbalance continues to be in operator and trades positions, where women make up only 3.4 per cent of the workforce. In response, we’ve launched the Career Growth to Operations Program that provides on-the-job,

in depth experience to women interested in making a transition to an operational role. Our aim is to ensure that increasing diversity of experience becomes ‘business as usual’ by making it easier to move and swap between jobs.

Another project is looking at the lessons learnt from BlueScope sites that have successfully embraced a diverse and inclusive workforce, and how these can be adopted in other parts of our business. In addition, where facilities are expanding and recruiting new employees, all efforts are being made to ensure that recruits represent a range of diverse backgrounds, cultures and experiences.

BlueScope’s Diversity Council continues to monitor our progress against all diversity measures and initiatives, and reports to the Board of Directors.

I am fully committed to breaking down all barriers that may prevent BlueScope from embracing and encouraging a truly diverse workforce. We will not continue to grow and be successful without very good, experienced and diverse teams.

Paul O'Malley Managing Director & CEO

BlueScope’s success is built on our people. We will be even more successful as our workplace respects and encourages diversity of opinion, background, education, culture, experience, beliefs and attitudes. We must embrace the power of difference that everyone brings to help BlueScope innovate and create new products, services and business processes.

Diversity at BlueScope – a message from Paul O’Malley

We are also working to increase awareness and commitment to diversity through communication and training programs.

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The greatest gender imbalance continues to be in operator and trades positions, where women make up only 3.4 per cent of the workforce.

At BlueScope, women comprise 37% of cadets and 39% of graduates

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New approach builds business success

In line with BlueScope’s focus on promoting diversity of experience in the workforce, Vu Thi Kieu Trang, Commercial Manager, Vietnam, was seconded from her regular role to assist BlueScope Indonesia in assessing its market offer to ensure it offers an efficient channel to market and meets customer demands.

“ Coming from a different market and with a different range of experiences I was able to assess the situation with a fresh perspective,” says Trang. “We then set our goals. For the midstream market our objective was to develop a tailored market product portfolio and standardise the market offer to targeted segments; while for Lysaght the challenge was to establish a product costing and pricing model process.

“ Working together the team developed a range of initiatives to successfully achieve our objectives. These changes will help BlueScope Indonesia become more competitive in the market, better understand its customers and build a lean manufacturing and supply chain operation.”

Trang believes the four months she has spent in Indonesia have delivered benefits to the business, as well as helped her own development.

“ This was an opportunity to do something outside the scope≈of my normal Commercial work in Vietnam. Working with a different department has given me a new view of strategy implementation, particularly from the Sales and Marketing viewpoint.

“ I’ve also learnt how to position a product, and how the Company manages the challenge of different markets and customer demand. And personally, I’ve built my leadership skills in driving the team to reach our objective in a short timeframe, I know how to better leverage BlueScope’s country networks, and I’ve learnt how to cope with a new culture and environment.”

Trang’s work has delivered BlueScope Indonesia the foundation for a new product and service offer to achieve higher growth; and Lysaght has a new comprehensive costing model and better business support for project margin analysis.

On her return to Vietnam, Trang will apply her newly-acquired knowledge from Indonesia to improve the costing and pricing model for Lysaght Vietnam and support new investment in the Philippines market. “The Vietnam midstream market offer is quite lean and efficient at the moment, but this experience has reinforced the need to keep tracking our product performance and competitiveness and promote our premium products.”

Working together the team developed

a range of initiatives to successfully achieve

our objectives.

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Diversity of inclusion

The appointment of three women to BlueScope Malaysia’s Country Management Team (CMT) is one step in helping change the mindset in the heavy manufacturing industry in Malaysia, and in Asia more broadly. Ngan Ze Hong, Vice President Manufacturing, Audrey Leow, Vice President Supply Chain & Customer Service, and Fiona Lee, Vice President Marketing & External Affairs, now comprise one third of the team.

BlueScope recognises that gender diversity, as with diversity of thought and inclusion, brings a broad perspective to decision making and resolving issues; and increasing the number of women on management teams is one of BlueScope’s diversity goals.

“ We view a subject differently to our male colleagues,” says Audrey. “We have already seen examples where we have helped guide the CMT discussion to the detail of an issue where others on the team have focused on the bigger picture.

“ However, we have also had to learn how to make sure our voice is heard around the table, not only at BlueScope but when interacting with customers and others in the industry.”

“ It is important for everyone to eliminate any preconceived ideas so that we can all contribute effectively to building a sustainable and strong organisation,” continues Ngan. “Our team is enriched by having a diverse range of talents. Women in senior roles can also be role models for others in the Company and help them see the potential and opportunity available to them.”

Employees by country as at 30 June 2015

7,117 Australia 45%

36 Other 0.2%

3,234 North America 19%

2,593 ASEAN 16%

1,481 China 9%

1,610 New Zealand 10%

“I hope that others in BlueScope will be able to learn from our experience, and that our leaders help build the right environment, including mentoring and skill-development programs, to allow all forms of diversity to be accepted and to grow,” says Fiona.

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Shai Thompson is the inaugural recipient of the BlueScope Indigenous Scholarship in Business, which has been established to support an Aboriginal or Torres Strait Islander student studying undergraduate business at University of Sydney.

Shai is now pursuing a Bachelor of Commerce at the Business School, majoring in Human Resource Management.

“ I am honoured to receive this scholarship,” says Shai. “I chose to study at the University of Sydney Business School because of its great reputation, and because it’s always been a dream of mine to study there. I did everything I could to make that happen and now I am here.”

To qualify for the BlueScope scholarship, candidates were asked to demonstrate academic ability, leadership potential, extracurricular activities and community involvement. In addition to providing financial assistance for her three year degree, the scholarship offers Shai the opportunity to work at BlueScope during the university holidays.

“ The University of Sydney Business School has given me endless opportunities, all of which have helped enrich my studies,” said Shai. “Gaining experience with BlueScope will also give me the exposure to the business world that I am keen to experience.”

“ I can't thank the University enough for their support, and I thank BlueScope for its great generosity and the opportunity I have received.”

The scholarship is an initiative of the BlueScope ANZ Sales, Marketing, Innovation & Technology team in partnership with the University of Sydney, and demonstrates BlueScope’s goal to actively foster a diverse and inclusive work environment. Indigenous Australians like Shai represent a young and enthusiastic talent pool for business.

Our workforcePercentage of women by role

Operators and trades 3.4%

Team members 37.0%

Team leaders & professionals 21.7%

Middle managers 18.7%

Senior managers & executives 14.5%

Scholarship supports indigenous students

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BlueScope has formed a partnership with the Australian Institute of Sport (AIS) to establish ‘Change the Game,’ an innovative program which sees 10 BANZ employees matched with 10 elite champion female athletes for mutual learning and development.

Speaking at the program launch, Paul O’Malley, Managing Director and CEO, said the parallels between sport and business are well known, but the greatest similarity is the desire to develop people who perform.

‘Whilst this innovative pilot program is mutually beneficial in developing the skills of both sides, from our perspective I’m really excited about how this program can help build our next generation of leaders into elite performers. We are always open to innovative opportunities that help our people grow and give them an edge.

‘Change the Game supports our diversity strategy – to foster a talented workforce of diverse opinion, gender, background, education, culture, experience and beliefs. We are confident our emerging leaders will learn a lot from some of Australia’s most talented and elite sportspeople.

‘BlueScope also recognises the vital role the AIS plays in Australian culture and we are proud to support that through the Change the Game partnership,’ Paul said.

Change the Game will run initially as a 12-month pilot program. The aim is that BlueScope participants will see how athletes pursue elite performance and overcome setbacks, while the athletes will learn how their skills can apply to business with a view to how they manage their career after retiring from sport.

The 10 pairs of BlueScope employees and athletes will arrange regular contact throughout the year – managing around the athletes’ training schedules for the Rio Olympic Games next August. In addition there will be three formal workshops for program participants during the year

The female athletes are from 10 different sports and include Olympians, Commonwealth Games medallists, world champions, Para-athletes and emerging international talent. They are not only successful in the sporting arena, but have demonstrated a well-rounded approach to study, work and the pursuit of excellence.

Speaking at the program launch, Paul O’Malley, Managing Director and CEO, said the parallels between sport and business are well known, but the greatest similarity is the desire to develop people who perform.

Changing the game

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The introduction of the new long spanning secondary structural member, known as the Truss Purlin XT in Butler and the Widebay Trussed Purlin in Varco Pruden, was much anticipated by North American Builders awaiting a new and proprietary solution for large bay buildings (up to 18 metres). The product had been displayed at sales meetings, the sales forces had been briefed on the unique features and benefits, and pilot projects had gone very well with very positive comments received from field superintendents.

Whilst the outlook for the new product appeared to be positive, nothing would have enabled BlueScope Buildings North America (BBNA) to prepare for the rapid acceptance and resulting sales growth delivered by Builders and major corporate accounts. “We liked this product and it appears that our customers like it too,” said Dan Kumm, President BBNA. “We’ve invested in additional capacity as a result and we plan to continue investing as sales grow further.” BBNA moved rapidly to shut down a legacy product and quickly added needed capacity to keep up with demand.

A number of Builders have converted projects that were previously 100 per cent conventional steel to a BBNA pre-engineered design using the new product. Customers are quite effusive when it comes to reciting specific benefits, including:

• the bright interior appearance is a real plus when compared to dull, red-primer,

• the bundles arrive in exact field erection sequence for each bay and save real dollars when it comes to sorting out parts on the jobsite, and

• the new product can now easily span up to 18 metres in virtually every market in the USA, and meet requirements for large distribution centres.

The fast start is a positive omen for this new product in North America and will position its Builders for marketplace success for the future.

Off to a fast start

Our customers are our partners

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A new service centre facility located in Cilegon, Banten, brings coil processing in-house and ensures BlueScope Indonesia reaches the market with greater flexibility, lower inventory and reduced costs.

The new slitting facility has a processing capacity of 60,000mt per year. Together with the shearing line it improves BlueScope Indonesia’s service offering, opening new channels into the roofing truss, home appliance and roller door markets, with other opportunities for application in manufacturing segments.

The layout of the facility also maximises the building floor space to provide sufficient space to store feed coil and finished products, and it operates with a very efficient material flow process.

The facility was successfully commissioned in April, and officially opened in August.

In the first stage of a tiered approach, partnerships have been established between BlueScope and authorised dealers, most of whom are family-run roll formers, who typically have limited channels to market and limited engineering capability.

In building the partnership model, the Zacs® authorised dealers are obliged to form alliances with local partners to optimise the benefits for all parties. Each dealer recruits five local construction companies with engineering capability and develops them to be Lysaght Centres, which are serviced by the Zacs® store so that they no longer have to source product themselves.

In addition, each Zacs® store dealer recruits 50 local builders to join a loyalty club which offers them various privileges. They also build up a secondary channel of 10 BlueScope

Zacs® outlets by engaging with hardware and construction material dealers in remote areas that the authorised dealer cannot reach to supply efficiently themselves.

In turn, BlueScope offers product knowledge and other specialised training as required: project lead information, installation skills, branding materials and sales kits.

This is a real partnership built on understanding, respect and support at each level through the value chain. The model has proven to be successful in meeting its targets. Volumes from BlueScope Zacs® authorised dealer stores have grown by an average 20 per cent in FY2015, more than 2,000 local builders have been recruited to become BlueScope Zacs® brand ambassadors, and training is underway for the Lysaght Centres and BlueScope Zacs® outlets.

Delivering for the customer

Zacs® stores demonstrate: our customers are our partners

In Vietnam, a chain of retail stores with

exclusive access to BlueScope’s Zacs® steel brand is opening

new channels to market.

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New Zealand Steel was a principal supporter of the Waiuku Steel and Wheels Festival, an annual community event which features displays of hot-rods, bikes, classic and vintage cars, trucks, military vehicles, displays and memorabilia.

New Zealand Steel’s branded trucks, large SteelServ vehicles and photograph display were very popular. The Waiuku Business Association presented Andrew Garey, General Manager New Zealand Steel and Pacific Islands, with a carved bench seat to recognise the Company’s support to the community in the last 50 years.

Preparing for life after schoolHidayat Muharam, Human Resources Manager, BlueScope Indonesia, has delivered a presentation to a group of twelve graders at SMKN 2 Cilegon school on how to conduct a proper presentation, public speaking, team building, and how to facilitate an effective meeting.

The presentation program, to be conducted regularly at schools around BlueScope’s Cilegon site, aims to help prepare students for life after school, whether they decide to enter the business world or to continue to higher education.

“These are skills students need to help them become more independent and creative,” says Hidayat. “They also help build self-esteem, which also prepares them to enter the business world.

“It is important to acquire these skills and knowledge as early as possible to develop organisational skills at school, as well as being an important investment for future study and career.”

BlueScope Indonesia has signed a Memorandum of Understanding with SMKN 2 Cilegon school, whereby BlueScope will offer guidance and support to the school and to students preparing to enter the business world, especially in the industrial sectors of Cilegon City. The program demonstrates BlueScope’s connections to its communities and its desire to help the community and support a stronger local economy.

Community

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New Zealand Steel hosts family and friends

Waste recovery wins environment award

In support of a healthy community

The inaugural BlueScope Environment Award was won by the Port Kembla Steelworks’ Slabmaking – Basic Oxygen Steelmaking (BOS) team.

The large-scale ‘Waste Recovery and Minimisation of BOS Filter Cake’ project was recognised for significant cost and environment savings achieved through efficient use of resources. Implementing the project has eliminated using approximately 62,564 tonnes of iron ore, resulting in $7.6 million in cost savings and reduced overall waste that might otherwise represent a disposal liability.

The winning project was selected from 19 entries. In line with the FY2015 Corporate Environment Strategic Plan, each business unit was encouraged to submit an environmental engagement or improvement activity which demonstrates commitment to Our Bond and BlueScope’s HSEC Policy: “We care for our environment through the efficient use of resources; pollution prevention strategies and mitigation of process disturbances; reducing the environmental impact of our operations and products; and community engagement and consultation.”

The award was announced on 5 June, recognised as World Environment Day across the globe and in many BlueScope businesses, and formally presented to the BOS team by Daniel Grollo, Chair of BlueScope's Health, Safety and Environment committee.

BlueScope Malaysia joined forces with a local hospital to host a health fair for the community of Kapar, Selangor.

The fair coincided with World Heart Day and offered basic health screening services to help educate the community about cardiovascular health and how to minimise the risk of coronary heart disease, the number one cause of death in Malaysia.

Healthcare workers provided free blood pressure, glucose, body mass index and cholesterol tests to 300 people. BlueScope also arranged activities and gifts for young children who attended.

The hospital was very grateful to BlueScope for helping the community be more conscious of heart disease, and learn how to choose healthy eating habits and take up physical activities.

The fair was part of BlueScope Malaysia’s longstanding “BlueScope Steel and Community” corporate social responsibility program in the Kapar community.

Around 1000 employee employees and their families enjoyed the Open Day held to mark New Zealand Steel’s 50th anniversary.

The cornerstone attractions were the tours of the Hot Strip Mill and the general site bus tour. Over 800 people went through the Rolling Mills and an equal number rode on the general site bus tour.

Employees proudly showed the operations to their families, pointing out special features along the way, and the museum marquee proved to be a popular destination for both past and present employees.

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Employee donations make a difference

For the third year BlueScope Suzhou has made arrangements for employees to donate blood at a local community centre. This time round 38 healthy employees took part. The need was more greatly felt this year as employees expressed concern for those injured in the Tianjin Port explosion in August.

In the past five years, the Suzhou site has also arranged collections of unwanted clothes and other goods. Employees embraced this activity with passion, and each year several boxes of donated items have been distributed to those most in need.

Donating blood is a simple thing that can make a big difference to the lives of people.

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Our customers are our partners, our communities are our homes

BlueScope Vietnam and long-standing manufacturing customer Vinh Tuong have worked together to provide housing to local builders living in poor family conditions.

Under the program, Vinh Tuong calls for submissions from builders across Vietnam, and ‘ambassadors’ visit the applicants to assess their application for a new roof, taking into consideration factors such as the status of their≈house, financial status, family health and wellbeing, and their connection to the local community.

BlueScope plans to help build 20

houses this year, following on from 10 in 2013 and 17

last year.

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BlueScope Buildings North America employees pledged over $270,000 to the 2015 United Way campaign, and continue to support local agencies through volunteer activities. The BlueScope Foundation also makes annual contributions to support area campaigns across the US.

For the second year over 50 employees and their families helped an agency for youth on the United Way Day of Action at Gillis Home in Kansas City, Missouri.

Meanwhile, BlueScope employees in Annville, Pennsylvania volunteered for the annual Day of Caring at Quest, which offers vocational rehabilitation, training and work experiences and employment opportunities for people with disabilities.

Giving back through United Way

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BlueScope Buildings scholarships

In 2015 the BlueScope Foundation issued 12 scholarship awards to children of employees, including Amanda Talbot of Rancho Cucamonga, California, and Ruby Rhoad of Annville, Pennsylvania.

Joe DiSilva, Steelscape Plant Manager, Rancho Cucamonga, presents the scholarship award to Amanda Talbot, pictured with her parents Travis and Carolyn Woodside and sister, Fiona

Derek Storm, Annville Plant Manager, presents Ruby Rhoad and parents Karen and Steve Rhoad with the scholarship award.

As the final activity in an ‘Empowerment’ training program, BlueScope Buildings Monterrey, Mexico employees applied teamwork, motivation, self-esteem and communication skills to make toys, which were then donated to children with disabilities at the local Juan Sanchez Camacho school that BlueScope supports.

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Our shareholders are our foundations

BlueScope’s Board of Directors toured the Company’s operations in China to better understand the challenges and opportunities facing the business there. The visit included meetings with employees, the Australian Ambassador, customers and steel industry experts.

The Directors toured BlueScope sites representing the Buildings, Lysaght and Coated businesses in Shanghai, Xi’an and Suzhou. Sessions at each site gave employees the opportunity to ask questions about business performance and BlueScope’s plans for its operations in China. The Directors conveyed confidence to employees who expressed concern about recent downgrades of Chinese economic performance, noting that economic growth at 7 per cent still offered BlueScope many opportunities.

The Board committed to visit China more frequently to keep informed about the market and to discuss business conditions with BlueScope representatives on the ground.

At the construction site of the Shanghai ShuBang 110kv power distribution station, a Butler customer, Directors saw first-hand how the quality of Butler products and its technological innovation helped BlueScope win this important project ahead of its competitors. They also visited operations of long-standing customer Western Superconducting Technologies Co., Ltd. a leading provider of high quality superconducting materials and titanium alloys, and learnt of the strategic partnership Butler China has established with the company.

The Board concluded its visit with better understanding of the business prospects for BlueScope in China, and the opportunities for deeper cooperation with Chinese enterprises and partners.

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The hard work of BlueScope people contributed to the Company upgrading its outlook for 1H FY2016, when we expect underlying EBIT to be approximately 40 per cent higher than 2H FY2015. The lift in expectations is due to:

• the earlier delivery of cost reductions;

• growth in domestic demand particularly from residential construction;

• benefits from the lower A$:US$ in our Australian Steel Products segment; and

• incremental improvements in other segments.

The upgrade excludes the impact of the acquisition of the remaining 50 per cent of North Star. Looking further forward however, 2H FY2016 will see margin pressure, given spot spreads are lower than lagged spreads. Expectations are subject to spreads, FX and market conditions.

Our shareholders are our foundations

As at 30 June 2015, 565.4 million issued securities were spread over 92,000 shareholders. BlueScope’s 20 largest registered shareholders are shown below:

Looking ahead...

Rank Name % Issued capital

1 NATIONAL NOMINEES LIMITED 15.36%

2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 14.68%

3 CITICORP NOMINEES PTY LIMITED 14.21%

4 J P MORGAN NOMINEES AUSTRALIA LIMITED 12.89%

5 BNP PARIBAS NOMS PTY LTD 5.40%

6 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 4.99%

7 CITICORP NOMINEES PTY LIMITED 3.07%

8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 2.64%

9 UBS NOMINEES PTY LTD 1.69%

10 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 0.71%

11 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 0.66%

12 AMP LIFE LIMITED 0.49%

13 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 0.45%

14 NATIONAL NOMINEES LIMITED 0.42%

15 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 3 0.34%

16 PAN AUSTRALIAN NOMINEES PTY LIMITED 0.25%

17 UBS NOMINEES PTY LTD 0.24%

18 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 0.23%

19 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 0.21%

20 BOND STREET CUSTODIANS LIMITED 0.19%

TOTAL 79.11%

Balance of Register 20.89%

Grand TOTAL 100.00%

BlueScope: 16,000 people in more than 100 manufacturing plants

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